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Dec 04, 2018

Finance Minister: Hungary opposes separate euro zone budget

During a meeting of EU finance ministers in Brussels on Monday, Mihály Varga said having a separate budget for the countries that share the common currency could present serious risks

The finance minister has revealed that Hungary does not support the proposal to create a separate euro zone budget, stating that such a concept would be against the country’s interests.

During a meeting of EU finance ministers in Brussels on Monday, Mihály Varga said having a separate budget for the countries that share the common currency could present serious risks. He highlighted that a euro zone budget would unnecessarily deepen the existing divide between euro zone and non-euro zone members.

The minister stressed that all EU member states had a duty to develop their economies, help the less advanced countries catch up with the more prosperous ones and promote innovation and R+D. He argued that the passage of a joint euro zone budget would restrict non-euro zone countries from financing the bloc’s common goals.

Minister Varga said the idea for a euro zone budget was proposed by German Chancellor Angela Merkel and French President Emmanuel Macron in June after their meeting at Merkel’s Meseberg retreat outside Berlin.

The minister concluded that the creation of such a budget requires the backing of the other 17 euro zone countries. Several other countries, including the Netherlands and Finland have also expressed their opposition to the plan.